unaligned

Ryanair reported Q1 2016 net profit of E256m (US$281m), up 4% compared to E245m YOY. Q1 revenue was E1.69b, up 2% YOY, while expenses were E1.38b, up 1%, producing an operating profit of E306.8m, up 6%. Ancillary revenue accounted for 26% of the total figure (up 2% on the previous year). Unit costs were down 9% YOY (down 4% excluding fuel). Passenger numbers rose 11% to 31.2m compared to the year-ago period, while load factor was up 2% at 94%. The airline estimates it will carry 117m passengers this year, up 11% YOY. CFO Neil Sorahan said forward bookings were increasing and were up 1% on the year-ago period. Financial guidance for the full year remained essentially unchanged, with estimated net profits in the E1.375m to E1.425m bracket, although he cautioned that downside risks were present. <br/>

Ryanair is to "pivot" growth away from UK airports and instead focus on hubs in the EU following the Brexit referendum result. The airline said the decision by Britain to quit the EU was "a surprise and a disappointment", adding: " This winter we will cut capacity and frequency on many London Stansted routes (although no routes will close) where we are already significantly ahead of our multi-year traffic growth targets." Ryanair also flagged that the vote result will mean lower economic growth, weaker consumer confidence and put downward pressure on fares until the end of 2017 "at least". The company said there could be further implications if the UK is unable to negotiate access to the single market and the open skies regulatory framework currently in place across the EU. <br/>